Prices on long-term U.S. Treasurys fell on Monday with investors feeling comfortable embracing riskier assets as upbeat U.S. housing numbers strengthened the view that the world's largest economy was steadily recovering.
But long Treasuries pared losses, with medium-term U.S. debt prices turning positive, as the Nasdaq index fell. The ongoing political tension between Russia and Ukraine has also kept a cap on long bond yields.
Yields on U.S. 30-year bonds rose after four days of losses. On Friday, long bond yields fell to their lowest in more than nine months after Russia unexpectedly raised interest rates just hours after the S&P downgraded the country's credit rating.
Benchmark U.S. 10-year yields also inched higher after three days of losses.
U.S. pending home sales for March, which rose for the first time in nine months, undermined Treasuries. The National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, was up 3.4 percent at 97.4. The increase beat economists' expectations for a 1.0 percent advance.
"With this report, housing may start catching up with the other positive data we have been seeing," said Gennadiy Goldberg, interest rate strategist at TD Securities in New York.